Microsoft has cut the European prices of all three versions of its Xbox 360 console in the run up to Easter.

The basic Arcade model, which has no hard drive, will sell for an estimated retail price of £159.99 from 14 March, making it cheaper than Nintendo's Wii console.

The standard Premium Xbox 360 will be £50 cheaper at £199, while the black Elite version will be priced at £259.99.

"We have reached and surpassed several key milestones that form part of our long-term strategic plan to achieve critical mass in Europe," said Chris Lewis, vice president of Microsoft's Interactive Entertainment Business in Europe.

Several retailers such as Amazon have already lowered the prices of the consoles ahead of the official date.

"History shows that £159.99 is the price point where a console's audience begins to expand," said Lewis.